“Gross margins for the year, as we've said consistently, we expect roughly flat for the full year, and that's what's embedded in the operating margin outlook.”

In context

“investments, or is it simply a function of those things? Brandon, you mentioned some of the lapse of incentive comp, and I think there was one other thing. So, is it internal or external? Brandon Sink: Yeah, Simeon, it's really the latter. The updated full year operating margin outlook is very consistent when you look at it annually with our rule of thumb, 14 basis points of contraction on the downside for every point of comp decline. And as you mentioned, second half quarterly differences are driven mainly by the timing of the merch PPI initiatives as we turn through the callbacks and then what we're cycling over as it relates to prior-year incentive compensation. We called out last year $140 million of frontline bonuses that we paid in Q4. So, it's really a function of those two things. Gross margins for the year, as we've said consistently, we expect roughly flat for the full year, and that's what's embedded in the operating margin outlook. Simeon Gutman: Perfect. Thanks. Good luck. Brandon Sink: Thank you. Operator: Our next question is from the line of Steven Zaccone with Citi. Please proceed with your questions. Steven Zaccone: Hey, good morning. Thanks very much for taking my question. I wanted to follow up on just understanding the guidance cut as well, because it seems like the Pro business is kind of outperforming expectations. So, if you have to dig a little deeper into the DIY side of the business, maybe parse through some of the categories on home decor and hardlines, what's really the biggest change to your outlook? And given the fact that sales have been coming in a little bit weaker than expected for longer, does that temper your view on a potential recovery in DIY demand? Marvin Ellison: So, Steven, thank you f”